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EUR/JPY in a Bullish Continuation Breakout

On the EUR/JPY daily chart, we can see that price rebounded sharply from 135.73 last week. Price note only formed a double bottom but also broke above a falling trendline that originated from the 143.47 April 1st high. Price is also above the 100-, and 50-day simple moving averages. The daily RSI is clearing above 60, showing loss of bearish momentum. These are all signs that EUR/JPY is possibly in a bullish continuation scenario.

(EUR/JPY Daily Chart 9/15)

The weekly chart adds to the bullish outlook. First of all we know that price has been bullish since 2012, when it bounced up from 95.00. We can see that the moving averages are in bullish alignment. Price is attempting to break back above the 50-week SMA and revive the strong bullish bias.

Also note that the weekly RSI has held above 40, which reflects maintenance of the prevailing bullish momentum established by the rally in 2012 and 2013.

The weekly candle is also a very strong one that suggests upside at least toward the 145.69 high on the year.